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2026-04-09 14:20:15
[JPMorgan Chase: Indian Auto Sector May Be Hit by Commodity Inflation Caused by Iran War, Earnings Forecasts Lowered by 2%-16%] (1) JPMorgan Chase stated that even if the risk of production disruptions diminishes, commodity inflation caused by the Iran war could still impact the Indian auto sector. Since the start of the war, the Nifty Auto Index has fallen by 9%, underperforming the benchmark Nifty 50 Index's 6% decline. (2) The firm lowered its earnings forecast for the auto sector it covers for fiscal year 2027 by 2%-16%. Due to the conflict, raw material costs for Indian automakers have increased by 15%-20%, leading to a 2.5%-5% price increase across the industry. (3) JPMorgan Chase noted that most of the impact will be felt in the current June quarter and expects mid-to-high single-digit sales growth in all segments except tractors in fiscal years 2027 and 2028.
